News and Analysis

News and Analysis (15669)

NETSUITE EXECS CLEAN UP BIG TIME

 Zach Nelson, NetSuiteIf people have wondered what the NetSuite board thinks of the company's growth strategy, all they have do is read the annual proxy. I think we can say executives will be in a good mood when the cloud company's SuiteWorld conference convenes next week in San Jose, Calif. Named executives saw compensation for 2014 skyrocket as the company rewarded them with stock awards that  more than double their totals. CEO Zach Nelson received $31.6 million in compensation last year, up from $12.5 million in 2013 with a stock award of $28.3 million providing the push in the most recently completed year.

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SUGAR NAMES GLOBAL WINNERS

Craig Anderson, DataSyncSugarCRM has named its 2105 Global Partner Awards winners with Chandler, Ariz.-based Levementum selected as North American Partner of the Year. The global partner prize went to Squiz, based in Sydney, Australia. Squiz also has offices in New Zealand, Poland, the United Kingdom and the United States. Honored for outstanding regional revenue growth was Sioux Falls, S.D.-based DataSync. Early in April, DataSync, headed by Craig Anderson, said it had placed a $1.05 million round of private equity funding.

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SAGE LAUNCHES FRENCH CRM CHANNEL

Gildas Leroy, Sage FranceSage has launched a new CRM channel program. And you won't have details unless you read French and translation software does not make everything clear. But the fact that Sage has launched a channel anywhere should interest those U.S VARs who have concluded Sage is not channel friendly. We will ask if anywhere else is on slate other than France. The limited translation I got suggests the program is designed for obvious purposes—supporting customer needs and increasing partners something or another as the translation software did not generate a meaningful phrase and "to accelerate the sale and integration of cloud".

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BLACKBAUD NET, REVS UP DOUBLE DIGITS

Mike Gianoni, BlackbaudBlackbaud reported net income of $4.3 million for the first quarter ended March 31, an increase of 12.3 percent from $3.8 million a year earlier. Revenue for the first quarter of $150.5 million was 17.9-percent higher than the $127.6 million. In increased spending contributed to a 13. 6-percent drop in operating income. However, the bottom line was boosted by a 37.1-percent decrease in income tax expense. This week’s earnings webcast involved as much the transition to cloud products as it did more typical financial performance issues.

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AUSSIE EXCHANGE QUERIES XERO ON LOSS

 

XeroXero has posted a letter with two appendices in response to a query by the Australian stock exchange about the recently reported loss for the year ended March 31. Xero's loss of about $54 million was 96 percent higher than in fiscal 2014. The cloud software company's revenue for 2015 was roughly $141 million, 81 percent higher than in the prior year. Also posted on the New Zealand Exchange's website, the Australian Exchange's question was whether a reasonable person would consider the increased loss as having a material impact on the price or value of its securities.

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DESHAIES DEPARTS FROM SAGE

Don Deshaies, SageDon Deshaies, VP of channel management, has left Sage North America. Deshaies joined Sage in February 2014 and left to pursue a new opportunity, according to a statement from the company. Since the statement says opportunity, not opportunities, I concluded he is going to another job. (Well, thinking now maybe not). While Sage searches for a replacement, Joo Sohn, director of partner programs will take care of the channel.

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TOP 100: THE END IS NEAR

bsiThe call for applications for the 2015 selection of Bob Scott's Top 100 VARs is drawing to a close. But if you are interested in your firm's being considered, please contact us for a form. You just might get in. Send all requests to This email address is being protected from spambots. You need JavaScript enabled to view it. and an application form can be whizzing along faster than you can say "true cloud software."

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RANDOM THOUGHTS: MANUREXPO

ManurExpoThree passengers on a recent SkyWest airlines flight from Chicago to Connecticut lost consciousness. The airline billed them for the improvements to their surroundings. It turned out later that all had  middle seats between two fat people. ... I was reading an obituary from my home area of Southern Indiana. There was an old guy who died who habitually asked to kiss women's hands.

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SAP: ALL REGIONS RISE DOUBLE DIGITS

Bill McDermott,SAP SAP said its sales machine worked across the world as revenue in all regions was up by double digits. That analysis came during this week's earnings webcast as the German software giant released its earnings for the first quarter ended March 31. Total revenue was $3.86 billion, a rise of 30 percent from $2.98 billion in last year's corresponding period. While cloud bookings were up 120 percent, good old-fashioned maintenance revenue had 17-percent growth, coming in at $2.45 billion for the most recently ended quarterly, up from the prior year's $2.1 billion.

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NETSUITE REVS UP 34 PERCENT

Zach Nelson, NetSuiteResults for NetSuite's first quarter ended March 31 apparently put CEO Zach Nelson in a good mood. It was so good, he barely trashed the competition. He passed on SAP's announcement of its first-quarter results this week and was very kind in mentioning a win at a major H-P division a company that uses SAP. Whatever the reason, revenue rose to $164.8 million for the most recently ended period, an increase of 34 percent from slightly less than $123 million a year earlier. The loss of $22.7 million was only $480,000 higher than in last year's corresponding quarter. On a GAAP basis, the company lost 14 cents for every dollar of revenue, down from 18 cents. Non-GAAP net income was $9 million, more than double $4.4 million a year earlier.

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